US-China Reach Framework Agreement on TikTok Ownership, Final Decision Soon

 International Desk | PNN

After prolonged negotiations, the United States and China have finally established a framework agreement on the ownership of TikTok. This was confirmed by U.S. Trade Representative Jameson Greer following a high-level meeting in Madrid on Monday.

U.S. Treasury Secretary Scott Bessent said, “We now have a framework agreement. The commercial details will not be disclosed because it is a transaction between two private parties, but the terms have been agreed upon.”

China’s chief trade negotiator, Li Chenggang, later stated that both parties have reached a preliminary agreement on the TikTok issue. He added that the resolution was achieved by reducing investment barriers and enhancing trade cooperation. He also cautioned the United States, saying, “The U.S. should refrain from putting unilateral pressure on Chinese companies so as not to undermine our hard-earned progress.”

For nearly two years, there were concerns that TikTok might be banned in the United States. In April 2024, President Joe Biden signed a law requiring ByteDance to sell TikTok within nine months. Later, under Donald Trump’s administration, the deadlines were extended multiple times.

U.S. security agencies have consistently highlighted three major risks regarding TikTok: collection of sensitive data, influencing public opinion, and potential hacking of users’ devices.

Earlier, Microsoft, Walmart, and Oracle had expressed interest in acquiring TikTok, but various complications prevented the deals from going through. Currently, Oracle has been serving as TikTok’s U.S. data storage provider since 2022.

Bessent mentioned that the final outline of the deal will be determined this week when U.S. President Donald Trump meets with Chinese President Xi Jinping. Trump has already hinted on social media that “a company loved by the youth has been saved through this agreement, which will make everyone happy.”

Trade Representative Greer also stated, “The days of repeatedly extending deadlines are over. We now have an agreement in hand.”

Analysts believe this agreement could pave the way not only for TikTok but also for forming new trade relations between the world’s two largest economies.

Source: The Guardian